Bank of America Survey: Investor Allocation to Tech Stocks Hits Highest Since 2020, Semiconductor Stocks Become Most Crowded Trade

Reported by Golden Finance, a survey conducted by Bank of America reveals that global investors are chasing the AI-driven stock market rally, with allocations to tech stocks reaching their highest level since the market rebound following the COVID-19 pandemic. The survey shows that the proportion of fund managers overweighting tech stocks rose from 30% last month to 37%, marking the highest level since August 2020. Approximately 45% of respondents believe an AI bubble will emerge by 2027, while 42% think it won't. Artificial intelligence has consistently been the hottest trading theme in the stock market, driving the S&P 500 Index up nearly 120% during a four-year bull run. However, as investors question whether AI investment returns can justify massive tech spending, some of the enthusiasm surrounding AI is beginning to fade. Respondents in Bank of America's October survey indicated that global semiconductor stocks are currently the most crowded trade in the market. (Bloomberg)